Analysis of Tax System Optimization from the Perspective of Tax Evasion Cases Involving Public Figures

Abstract

Taxation constitutes a primary source of fiscal revenue for many countries. In recent years, there has been a surge in instances of celebrities engaging in tax evasion. The fundamental driver behind such behavior lies in the pursuit of personal interests. Despite hefty fines and the jeopardization of careers for some individuals, others continue to employ tactics such as signing "yin-yang contracts" to evade taxes. As public figures in the entertainment industry, their actions prompt societal reactions. This paper explores how a nation can navigate the taxation system to mitigate tax evasion among high-income groups in the entertainment industry. The aim is to leave them with no recourse, fostering a cleaner social atmosphere and enabling public figures like celebrities to play a leading role in society. Starting with the harmful effects of celebrity tax evasion, this paper delves into classic cases, analyzing the issues within China's taxation system and presenting relevant recommendations.